Indus Valley Times

Kulamani Biswal

Bhubaneswar, Dec. 1: Odisha’s public discourse includes several voices who speak on consumer issues and energy matters, and such participation can be helpful when rooted in facts. In recent weeks, however, a few individuals and groups have raised concerns that the Power Regulator has allowed Power Discoms to collect an additional 36 paise per unit, suggesting that consumers may have been misled. Ironically , the pseudo expert neither approached the regulator nor the Discoms for their versions and just issued a baseless press release.

 Alongside this, a pattern of unfounded questioning of the regulatory process has also emerged, one that overlooks the extensive checks, audits, and public hearings that are already mandated under the Electricity Act.

 As someone who has been involved in the regulatory process and deeply respects the Electricity Act framework, I believe it is important to clarify misunderstandings before they mislead the public or undermine trust in institutions.

 The Claim—and Why It Doesn’t Hold Up

 The allegation is simple:

“OERC approved an average cost of Rs 5.67, but the Discoms collected Rs 6.03. Therefore, consumers were overcharged.”

 Unfortunately, this interpretation misunderstands how the tariff system is designed. The  regulator does not approve a single averaged number as a billing ceiling. It approves a Tariff Schedule with different rates for different categories—domestic, industrial, commercial, agricultural, and others.

 If industrial and commercial consumption increases—which it has, owing to Odisha’s industrial growth—the overall average realization naturally rises. This is not evidence of wrongdoing; it is simply the outcome of a diversified tariff structure operating as intended.

 To understand the issue clearly, it helps to look at how the system actually works. Every year, the OERC carries out a formal audit called the True-Up, where it checks all revenues and power purchase costs in detail. If there is any surplus, the law requires that it be adjusted in future tariffs.

 These adjustments are the reason the OERC was able to keep tariffs unchanged for FY 2025–26, even when costs were rising. The amount now being described as “extra” is the same amount that helped avoid a tariff increase this year. Without this background, it is easy for such claims to create unnecessary concern among consumers.

 Why Responsible Reporting Matters

 Local media the custodian of public awareness plays a central role in shaping public understanding of the power sector. Reporting, especially on technical subjects, requires care.

 When claims of even “Re 1  scam” are based on a simplistic subtraction between two unrelated averages, they deserve closer scrutiny before becoming headlines.

Unverified claims do more than damage the reputation of OERC and Discoms.

 They can create hesitation among investors, erode trust in regulatory processes, and sometimes even trigger public hostility toward field staff who work around the clock to maintain and restore power.

 This is not the first time such factually incorrect narratives have circulated. In the past too, these pseudo-experts selectively presented figures and misleading interpretations have created avoidable confusion among consumers. Every time such narratives re-emerge, they contribute to avoidable apprehension among consumers and distract from the sector’s real issues and progress.

The Real Impact of Misinformed Narratives

 Behind the scenes, Odisha’s power distribution sector has made measurable progress. AT&C losses hovering in Odisha have dropped from over 30% to nearly 16.55% at the end FY ‘25. At the time of takeover accumulated losses were Rs.10821 Crores. Within 5 years since privatisation all four Discoms are financially viable and achievements are being praised at national level.

 After Cyclone Dana, power was restored to 14.8 lakh families within 12 hours—a feat that required disciplined planning, infrastructure investment, and financial stability.

 Narratives that distort financial facts can weaken the very systems that enable such resilience. The danger is not just reputational; it risks dragging the sector back to an era when restoration could take weeks due to inadequate resources, as seen after the 1999 Super Cyclone.

A Call for Balance and Accuracy

 Odisha’s consumers deserve honest information. The “36-paisa” allegation is not supported by how tariffs are determined, how revenues are accounted for, or how the regulatory audits function. Every rupee is subject to regulatory oversight, and any surplus flows back to consumers in the form of stable tariffs and stronger infrastructure. Criticism is welcome—when it is informed. What the sector needs now is a more constructive conversation, one that focuses on facts rather than fear.

 (Kulamani Biswal is a veteran energy expert with nearly four decades of experience in the coal and power sectors. He has held several key leadership positions, including Director (Finance) at NTPC Ltd., Director (Finance) & Chief (Finance) at the Central Electricity Regulatory Commission (CERC) at the level of Joint Secretary to the Government of India, and Joint Director (Finance) at the Odisha Electricity Regulatory Commission (OERC). Leveraging his extensive expertise in energy, regulation, and finance, he is currently practicing as an Advocate and Consultant, specializing in regulatory and financial matters in the energy sector. He is also an active member of several industry bodies, including the Utkal Chamber of Commerce & Industries.)